Saudi Arabia launches second edition of Tawteen program to create 170,000 jobs

Saudi Arabia launches second edition of Tawteen program to create 170,000 jobs
This second edition of the initiative will create 30,000 jobs in the tourism sector alone (Shutterstock)
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Updated 01 December 2022

Saudi Arabia launches second edition of Tawteen program to create 170,000 jobs

Saudi Arabia launches second edition of Tawteen program to create 170,000 jobs
  • Second edition of the initiative will create 30,000 jobs in the tourism sector alone

RIYADH: More than 170,000 new jobs are set to be created in Saudi Arabia thanks to the launch of the second edition of a government scheme to boost employment in the Kingdom.

The Tawteen program, organized by the Ministry of Human Resources and Social Development, will create 25,000 jobs in the industry sector, along with providing 20,000 employment opportunities in the health, transport and logistics services, and real estate and construction sectors. 

This second edition of the initiative will create 30,000 jobs in the tourism sector alone, as Saudi Arabia is pushing hard to make the Kingdom a global tourist destination by 2030. 

According to Saudi Arabia’s National Tourism Strategy, the Kingdom eyes creating one million jobs in the sector, along with attracting 100 million visitors annually by 2030. 

This edition of the Tawteen program also eyes creating 15,000 jobs in the trade sector and other 40,000 employment openings in other miscellaneous sectors. 

The Tawteen program is an initiative of the Saudi Industrial Development Fund to support and boost the direction of increasing local content spending, along with creating job opportunities for Saudis. 

Saudization, known as the Saudi nationalization scheme, or Nitaqat, is considered a crucial step toward economic success, as the Kingdom is now steadily diversifying its economy which has been dependent on oil for several decades. 

According to a recent report launched by the National Labor Observatory, Saudi Arabia was ranked first in the labor force growth rate among the Group of 20 countries during the period 2012 — 2021. 

Even though Saudization has been going on since 1985, the process was accelerated after the launch of Vision 2030 in 2016 by Crown Prince Mohammed bin Salman. 

As Saudization progresses in the Kingdom, the job market in the nation is also evolving rapidly, as a report from the Central Department of Statistics and Information suggested that the unemployment rate in the Kingdom decreased to 5.80 percent in the second quarter of 2022 from 6 percent in the first quarter of 2022. 

Earlier in September, while speaking at the Local Content Forum, Saudi Transport Minister Saleh bin Nasser Al-Jasser said that the Kingdom is working to localize 18 professions over the next year. 

He also added that the transportation sector in Saudi Arabia is working to increase the proportion of Saudi nationals in all its services.

“The transportation system is working to increase the proportion of localization in all its services. We are close to the percentage of full localization for the profession of co-pilot, and soon the full localization of pilots will be achieved,” said Al-Jasser.


UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 
Updated 11 sec ago

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

CAIRO: UAE-based agriculture technology startup Pure Harvest has signed a strategic partnership with Saudi Arabia’s National Agricultural Development Co. to deliver a large-scale national food security project. 

Pure Harvest will increase production capacity over the next five years by farming a wide range of crops, while the Saudi company, also known as Nadec, will market these products to its consumer base, hotels, restaurants, and catering partners. 

The partnership will enable the production of locally and sustainably grown fresh produce on more than 27 hectares on Nadec's farms. 

“Nadec is a formidable incumbent food supplier with a sterling reputation and brand, sizeable landholdings and enabling infrastructure, and an experienced leadership team,” Sky Kurtz, Founder and CEO of Pure Harvest Smart Farms, said. 

Nadec is the first listed agricultural company in the Saudi exchange market and produces over 1.5 million liters of dairy and juice per day, serving over 40,000 stories in the region as well as employing over 7,000 people. 

Both Nadec and Pure Harvest completed and commissioned their first-ever project in December 2021, producing over fifteen varieties of high-quality, hydroponically-grown tomatoes in an approximately six-hectare high-tech, climate-controlled growing system in Nadec City, Haradh. 

Pure Harvest raised $64.5 million in funding last October, and has secured over $280 million in total funding since its inception. 


Egypt fintech firm MNT-Halan securing $400m in new finance

Egypt fintech firm MNT-Halan securing $400m in new finance
Updated 01 February 2023

Egypt fintech firm MNT-Halan securing $400m in new finance

Egypt fintech firm MNT-Halan securing $400m in new finance

CAIRO: Egyptian microfinance lending and payments company MNT-Halan is securing $400 million in new equity and finance, bringing its valuation to more than $1 billion, the company said in a statement on Wednesday.

The investments include an equity stake of at least 20 percent of MNT-Halan worth more than $200 million taken by private equity firm Chimera Abu Dhabi. Another $60 million in primary capital is being secured from international investors, the statement said.

These investors include the International Finance Corporation, according to data on the IFC's website.

MNT-Halan obtained $140 million in financing by securitizing part of its loan book, the statement said.

MNT-Halan provides small- and micro-business lending, payments, consumer finance and e-commerce, the company said. It has more than 5 million customers in Egypt, of which 3.5 million are financial clients and 2 million are borrowers. About 1.3 million of the customers are active monthly.

New legislation and regulatory changes in Egypt, the Arab world's most populous country, have been helping attract a surge in new fintech investments and change the way the country's largely unbanked citizens do business.

"Following the completion of these investments, MNT-Halan’s valuation will exceed $1 billion," the statement added.

Previous investors in MNT-Halan include Cairo-based Lorax Capital Partners, and Middle Eastern venture capitalists Algebra Ventures, DisrupTech, Endeavor Catalyst, Egypt Ventures, MEVP and Wamda.


UAE's DFM net profit up 41.7% to $40m in 2022 

UAE's DFM net profit up 41.7% to $40m in 2022 
Updated 01 February 2023

UAE's DFM net profit up 41.7% to $40m in 2022 

UAE's DFM net profit up 41.7% to $40m in 2022 

RIYADH: Dubai Financial Market Co. reported an increase of 41.7 percent in net profit to 147.1 million dirhams ($40 million) for the fiscal year ending on Dec. 31, 2022, compared to 103.8 million dirhams in 2021. 

The company recorded a total revenue of 351.2 million dirhams, up 19 percent compared to the previous year’s 294.6 million dirhams. 

In the fourth quarter of 2022, DFM posted a net profit of 58.1 million dirhams compared to 65.7 million dirhams in the corresponding period of 2021, according to a press release. 

Its total revenue for the period reached 113.4 million dirhams, compared to 111.5 million dirhams in the fourth quarter of 2021.  

Helal Al Marri, chairman of DFM said: “Our relentless focus on our capital markets development strategy has borne fruit, making DFM one of the most active markets globally for new IPOs and listings with the successful listing of 5 IPOs for leading government-related and private companies.” 

The company’s board of directors also recommended the distribution of a cash dividend of 134.7 million dirhams, equivalent to 1.68 percent of the capital and 100 percent of the total retained earnings available for distribution, it added.  

Moreover, the board also resolved to submit a recommendation to the annual general meeting to adopt a new fixed dividend policy, stipulating that the company annually distributes a minimum of 50 percent of its net profit as opposed to the current practice of cash dividend every two years. 

DFM ended the year on a strong note with trading value increased by 24.5 percent to 90 billion dirhams compared to 2021, and the market capitalization of listed securities increased by 41.4 percent to 582 billion dirhams.  

Over the past year, DFM has attracted 167,332 new investors, registering 23 times jump compared to 2021.  


Saudi National Bank 2022 net profit surges 47% to $4.96bn 

Saudi National Bank 2022 net profit surges 47% to $4.96bn 
Updated 01 February 2023

Saudi National Bank 2022 net profit surges 47% to $4.96bn 

Saudi National Bank 2022 net profit surges 47% to $4.96bn 

RIYADH: Saudi National Bank reported a 46.7 percent increase in net profit in 2022 to SR18.6 billion ($4.96 billion) from SR12.7 billion in 2021, spurred by higher operating income and a decline in provisions for expected credit losses. 

The Kingdom’s biggest bank, which last year acquired a 9.88 percent stake in the troubled Swiss investment institution Credit Suisse, also booked a 61 percent surge in net profit in the fourth quarter of 2022 to SR4.8 billion from SR2.96 billion during the same period in 2021. 

The results beat the average analyst estimate of SR18.2 billion, according to Refinitiv data. 

The bank said in a statement to the Saudi Stock Exchange that total operating income grew 16.9 percent to SR33 billion in 2022 from SR28.23 billion in 2021.  

Its net special commission income jumped 18.4 percent to SR26.29 billion between January and December 2022 from SR22.21 billion in 2021. 

“Total operating income increased mainly due to higher net special commission income by 18.4 percent, fee income from banking services by 21.1 percent, and lower other operating expenses by 12.4 percent,” the bank said in a statement to Tadawul. 

Moreover, total operating expenses, including impairments, were lower by 15.2 percent, mainly due to a 13.5 percent decline in other general and administrative expenses and a 57.4 percent fall in a net impairment charge for expected credit losses. 

Earnings per share clocked an impressive 46.7 percent increase to SR4.15 in 2022 from SR2.83 in 2021. 

SNB’s total assets also increased 3.43 percent to SR945.46 billion in 2022 from SR914.15 billion in 2021, even as loans and advances gained 9.6 percent to SR543.31 billion to SR497.57 billion during the period under review. 

Customer deposits, however, dropped 3.45 percent to SR568 billion in 2022 compared to SR588.57 in 2021. 

Last month, SNB announced its intention to raise its paid-up capital by SR15.22 billion to boost its financial position. Its board recommended that shareholders approve the increase in capital by about 34 percent, from SR44.78 billion to SR60 billion riyals, through the issuance of bonus shares. 

“The recommendation is aimed to strengthen the bank’s financial position, which contributes to achieving its strategic objectives,” the bank said in a statement to Tadawul. 

The bank will issue about one bonus share for every three owned by shareholders, it said. 

“The eligibility of the bonus shares shall be for shareholders owning shares by the end of the trading day of the bank’s extraordinary general assembly meeting, which will be announced at a later date,” the bank said.


UAE’s national digital economy to touch $140bn by 2031: report

UAE’s national digital economy to touch $140bn by 2031: report
Updated 01 February 2023

UAE’s national digital economy to touch $140bn by 2031: report

UAE’s national digital economy to touch $140bn by 2031: report

RIYADH: The UAE’s national digital economy is expected to surge from $38 billion today to $140 billion by 2031, as the Emirate successfully pursues its digital transformation journey, according to a new report. 

The forecast, released by the Dubai Chamber of Digital Economy – one of three chambers operating under Dubai Chambers – noted that it plans to attract over 300 digital startups and 100 tech experts to Dubai by 2024. 

Dubai Chambers is also eyeing implementing new laws and policies, organizing a conference, promoting digital transformation, and enhancing the business environment to attract global digital firms to the Emirate, state news agency WAM reported. 

The UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications and Chairman of the Dubai Chamber of Digital Economy, Omar Sultan Al Olama, said that Dubai aims to become a key technological hub in the region. 

He added that the goal is to double the contribution of the digital economy to the UAE’s gross domestic product from 9.7 percent now to over 20 percent by 2031. 

Al Olama also emphasized the vitality of developing world-class digital infrastructure and supporting the dynamic startup ecosystem to drive digital transformation and sustainable business growth in the UAE. 

He further stressed the importance of raising awareness about challenges and future trends in the technological space, and also highlighted the necessity of embracing digital technology for sustainable business growth.

In April 2022 the UAE Cabinet approved a new Digital Economy Strategy, which includes more than 30 initiatives and programs targeting six sectors and five new areas of growth.